TAPI initial investment agreement signed

It has been reported that the four countries that make up the US$10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project, have signed an initial investment agreement. This agreement will enable the pipeline route through Afghanistan to be finalised and approved.

The signing took place in February 2016 in Turkey’s Istanbul, to operate the 1814 km natural gas pipeline.

The four nations had previously registered the TAPI Pipeline Project Company in November 2014, where India, Pakistan and Afghanistan were allotted a 5% shareholding each, with the remaining 85% stake being owned by Turkmenistan.

The investment agreement relates to the 5% share of the three countries importing natural gas, which provides an investment of approximately US$200 million.

Mobin Saulat, Interstate Gas Systems Managing Director, stated: “We have initialled an investment agreement in Istanbul and the final deal will be signed soon … Pakistan will contribute 5% of the financing for different activities of the project.”

Saulat added that the TAPI pipeline is expected to be complete by late 2019.